Induction motors are the most widely used motors in industrial applications due to its low cost and suitable for harsh environments. In recent years, many countries have raised MEPS to the IE3 level, and the international electronics committee (IEC) defined for the Fifth efficiency level IE5. But production of induction motor efficiency levels above IE4 seems difficult; this will create business opportunities for permanent magnet synchronous motor and synchronous reluctance motor. At first, this paper will discuss the energy efficiency policies for electric motors. After that, , this paper will analyze advantages and challenges, market size and supplier technology development for permanent magnet synchronous motor and synchronous reluctance motor.